'Secondary tariffs could go up…': US official warns of higher sanctions on India if Trump's talks with Putin fail; asks Europe to ‘put up or shut up'
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India at present faces a total 50% US tariffs for its exports to America.
US President Donald Trump has imposed a 25% base line tariff on India and an additional 25% tariff for the latter's crude oil trade with Russia. Experts widely believe that the 25% additional tariffs for crude oil trade are a pressure tactic to get Putin to stop the Russia-Ukraine war. India and China are the two largest buyers of Russian crude oil in the world.
US Treasury Secretary Scott Bessent in an interview with Bloomberg TV said, 'We put secondary tariffs on the Indians for buying Russian oil. And I could see if things don't go well, then sanctions or secondary tariffs could go up.'
Bessent mentioned that sanctions on Russia could either be intensified or relaxed, depending on the outcome of a meeting scheduled for Friday between President Donald Trump and President Vladimir Putin.
India's crude oil trade with Russia
India ranks as the third-largest oil consumer globally and has notably increased its purchase of Russian crude oil since the Russia-Ukraine conflict began, largely due to the substantial discounts available.
However, Trump's decision to double tariffs on Indian imports, intended to penalize India's ongoing acquisition of Russian oil, poses difficulties for the country and its refining industry.
Trump has demanded that India cease buying discounted Russian oil, arguing that it is "fueling the war machine" in the Ukraine conflict.
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The 25% secondary tariff on India's crude oil trade with Russia is set to be implemented on August 27. Experts suggest that the 21-day window allows for potential negotiations between India and the US.
Historically, India's crude oil imports from Russia were minimal, with a primary dependence on Middle Eastern sources. However, this changed in 2022 due to the Russia-Ukraine conflict and the G7's introduction of a $60-per-barrel price cap, aimed at limiting Russian oil income while ensuring a steady global supply.
India on its part has strongly opposed the US secondary tariffs. In a statement after Trump's announcement, the ministry of external affairs said, 'The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.
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'It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest. We reiterate that these actions are unfair, unjustified and unreasonable. India will take all actions necessary to protect its national interests,' the MEA statement said.
Bessent wants Europe to 'put up or shut up'
Meanwhile, Bessent has also warned the European Union to either be ready to impose secondary tariffs on countries trading with Russia, like China, or not speak up about how Trump should look to resolve the Russia-Ukraine matter.
Regardless of the meeting's outcome, Bessent emphasized the importance of European support for stricter measures. "The Europeans need to join us in these sanctions," he said to Bloomberg.
Since Russia's invasion of Ukraine in February 2022, the US, European nations, Japan, and other countries have imposed numerous sanctions on Russia. In July, the European Union introduced its 18th sanctions package against Russia, targeting Russian energy.
'It's put up or shut up time,' Bessent said. He expressed disappointment over the lukewarm reception he received when he proposed this idea at a Group of Seven meeting earlier this year.
'I was at the G7 meeting in Canada with President Trump and the Europeans kept talking about Senator Graham's bill to do the secondary tariffs. And I looked at all the leaders around the table, and I said, is everyone at this table willing to put a 200% tariff secondary tariff on China. And you know what, everybody wanted to see what kind of shoes they were wearing,' he said.
Bessent also stated that Trump intends to communicate to President Putin that every possible course of action is being considered.
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